South Korean actor Cha Eun-woo is again in the spotlight due to a tax-related controversy. The actor is facing allegations of tax evasion by South Korea’s National Tax Service (NTS). Authorities are reportedly investigating a case involving more than 20 billion Korean won, roughly Rs 108 crore. The allegations focus on companies linked to his mother and the actor’s entertainment-related earnings.
The Allegations Against Cha Eun-woo
The case surfaced early last year, when Cha underwent a high-intensity probe by the National Tax Service’s Seoul Regional Office. At that time, authorities notified Cha of over 20 billion won in additional taxes. They viewed Cha’s mother’s company, Cha’s Gallery, as a paper company. A paper company is a registered entity that exists only on paper, has no operations, and serves solely for financial purposes.
The National Tax Service suspected the company allowed the star to funnel his earnings into the corporation. This enabled him to pay lower corporate tax rates rather than the higher personal income tax, which can reach up to 45 percent. According to the report, the company founded by Cha’s mother signed a service contract with Fantagio, the agency that manages the actor. Under this arrangement, the company provided support for his entertainment activities. As a result, his earnings were distributed among Fantagio, the company, and Cha himself.
Agency’s Response and Apology
His agency, Fantagio, has firmly denied any wrongdoing, stating that the key issue is whether this company qualifies as a valid subject of taxation. They informed us that the actor has applied for a pre-assessment review and that nothing has been confirmed or officially notified at this time. They also added that they will actively cooperate with the legal process.
On January 26 this year, the actor posted a public apology via Instagram, expressing regret for causing concern and disappointment. He wrote, ‘Last year, I was in a situation where I could no longer postpone my military enlistment, and thus I enlisted without being able to complete the tax investigation procedures.’ He further vowed to fully cooperate with the government’s investigation and to accept the authorities’ decision, taking full responsibility for his actions.
Cha Eun-woo: Actor and K-pop Star
Cha Eun Woo is a South Korean singer, actor, and member of the boy band Astro. He made his acting debut in the film ‘My Brilliant Life’. The series ‘Gangnam Beauty’ became his breakthrough, achieving massive success and earning him a spot in GQ Korea’s Men of the Year. He gained international fame through ‘True Beauty‘, where he played the heartthrob Lee Su Ho alongside actress Mun Ka-Young. His latest superhero drama, WONDERfools, is scheduled to release on Netflix this year. Currently, the actor is serving his mandatory military enlistment, which began on July 28, 2025.
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